A new hotel with roughly 180 rooms and 20 cabanas is planned near Old Town La Quinta, with officials hoping it will better connect the city’s civic center to the nearby luxury shopping district. City officials say it will be an "upscale" hotel, though they did not define the term.
The city council agreed this week to sell 3.5 acres of land to Gather Capital Inc. for about $2.55 million, after negotiating the sale during a recent closed session meeting. The land is located west of the city’s library and wellness center and just across Desert Club Drive from the Old Town shopping and dining area.
As currently planned, the hotel will feature several amenities, including a ballroom, an event space, food and beverage vendors, pickleball courts and retail
space along a walkway on the north side of the property. Mayor Linda Evans noted the path that would cut through the project is intended to connect with the rest of the La Quinta Village and Old Town, enhancing the area’s walkability.
For the time being, Evans said the area will still be used for parking for events like the La Quinta Art Celebration and other events at Old Town until the project breaks ground at the site.
The developers also plan to contribute to the next round of funding for substation upgrades with Imperial Irrigation District, part of ongoing efforts to increase the area’s capacity to bring electricity to new projects.
“The IID power component is a critical piece, and we recognize that and are always trying to work with whoever’s bringing something to fruition here in La Quinta, to partner as best we can, knowing the burden that causes a lot of us,” Evans said.
Once it’s fully built, the hotel is expected to annually generate about $1.46 million in lodging tax revenue for the city. City Manager Jon McMillen told the council that revenue could be used for a range of upgrades in the area related to parking, power infrastructure and drainage.
The hotel’s brand has yet to be announced, as the project’s developers did not share details on the plans during the council’s Aug. 4 meeting. The project will be designed by Hannouche Architects, a Newport Beach-based firm.
It’s unclear precisely when the hotel could open, though a target window is in fiscal year 2029-2030, according to a city staff report. A development agreement setting an official timeline for the project is expected to come to the council for a vote later this year.
The project is among a handful of new hotels in the works in La Quinta. The council approved plans in 2024 for a 125-room Hampton Inn just south of Highway 111, and plans for another 113-room hotel along Highway 111 are currently under review at city hall.
Tom Coulter covers local government and politics for The Desert Sun. Reach him at thomas.coulter@desertsun.com.
This article originally appeared on Palm Springs Desert Sun: New ‘upscale’ hotel planned near Old Town La Quinta
